CBA Florida Inc. (fka CBAI)

[worthylion]

Myth--While no management may be more favorably viewed than bad management, my point was that a well managed, growing company will be valued at a higher multiple than a stalled company with bad/no management. With the prospect for future growth clouded, the valuation will be primarily based on the existing recurring revenue. The value of the recurring revenue will be materially affected by the "drop off" rate assumed by a buyer as a percentage of customers stop paying their storage fees each year. I think the annual drop off rate for most companies is less than 5%, but the difference in valuation assuming a 2% vs a 5% drop off rate is very material. Don't know what CBAI's drop off rate history is or what a buyer would assume.